The Swedish giant, Ericsson, recently announced that it has discontinued “definitively” all deliveries to its Russian customers. The company specifies that all of the Russian employees belonging to the group will be placed on paid leave.
Ericsson no longer works with Russia
The decision to withdraw from Russian territory and cease all business activities with the oppressor was implemented as soon as the war in Ukraine began in late February. A few days ago, Ericsson simply wanted to formalize the situation. The withdrawal of the Swedish giant adds to the long list of companies that have decided to no longer work with Russia. This is particularly the case for the three largest cloud providers in the world: AWS, Microsoft and Google. The three American companies followed the trend by withdrawing from Russia a few weeks ago.
In turn, semiconductor makers face a shortage of machinery
Ericsson would like to point out that this decision will have a major impact on its financial results. The Swedish worked a lot with Russia. A company spokesperson said that at “In light of recent events and European Union sanctions, Ericsson has decided to suspend its activities with customers in Russia and to withdraw from Russian territory, for an indefinite period”. Ericsson is currently in discussions with its customers and partners regarding the suspension of its affected activities.
The Swedish will not abandon its Russian employees
The Swedish does not want to make his employees in Russia pay for this situation who “have nothing to do with this conflict”. This is why all of the group’s teams in Russia were placed on paid leave. Ericsson adds that “the priority is to focus on the safety and well-being of our employees in the country”. Other big tech names have halted deliveries to Russia. We think of IBM, Dell, HP, or even Oracle. Most of them have not quantified the cost of this decision, but it will inevitably have an impact on their activity in 2022.
The Swedish company specifies that to financially cope with this withdrawal from Russia, it will deposit a provision of 900 million crowns (90 million euros) to cover the deficit for the first quarter of 2022. Ericsson adds that no layoffs are on the agenda. Ericsson’s withdrawal should certainly make Huawei happy. If the situation lasts, the Chinese giant could take over Swedish market share. Huawei now has one less competitor in the Russian market.